ModusLink Harnesses the Power of its Extensive Global Presence to Expand its Direct to Retail Supply Chain Model
Thursday January 19, 7:30 am ET
Delivers Increased Operating Efficiency and Inventory Reduction Saving One Client More Than $32 Million
WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 19, 2006--ModusLink Corporation, a subsidiary of CMGI, Inc. (Nasdaq: CMGI - News), today announced that it has expanded its Direct-to-Retail (DTR) Supply Chain Solution by leveraging the power of its extensive global supply chain network to deliver these services in key, low-cost Asian manufacturing and outsourcing destinations. Replicating the efficiency of its direct-to-retail capabilities within the U.S. and Europe, ModusLink now has the infrastructure, technology and expertise needed to handle the fulfillment demands of the retail channel in its China operations. By coupling the efficiencies of ModusLink's existing operations with the economic advantages of operating in China, clients are able to significantly reduce supply chain operating costs regardless of whether final delivery is in region or across the globe.
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With increased frequency, clients are looking to ModusLink to help them tap the benefits of a direct to retail distribution model. By leveraging ModusLink capabilities to fill retail shelves directly, clients can cut out the middleman, eliminating redundant steps in the supply chain, improving margins, and expediting time to market. By minimizing the need to stockpile product in warehouses, clients can reduce inventory levels, streamline supply chain operations and significantly reduce costs.
One of ModusLink's clients, a leading provider of consumer electronic storage products, was able to reduce supply chain costs by more than $32 Million and reduce inventory by 41% within nine months of the new implementation. This deployment is a perfect example of the degree to which ModusLink's DTR Supply Chain Solutions can impact a company's operating efficiency.
"In today's competitive landscape, efficient supply chain management is a business imperative and the ability to cost-effectively leverage channel relationships to move product is a valuable differentiator," says Joseph C. Lawler, President and Chief Executive Officer of CMGI. "ModusLink has been enabling its clients to reap the benefits of direct to retail fulfillment for several years and has proven expertise in dealing directly with the retail channel. The introduction of our next-generation DTR solution increases the overall value of our supply chain services and provides even greater cost savings opportunities for our clients."
ModusLink's Professional Services Group works directly with clients to evaluate their needs and determine which distribution model most cost-effectively aligns their supply chain objectives with their business goals. Whether clients deploy their direct to retail strategy in the US, Europe, or Asia, they reap the benefits of ModusLink's extensive experience working directly with the retail channel.
ModusLink's relationship with major players in the retail industry enhances its ability to comply with the stringent new technology mandates, business requirements and operating protocols of the retail channel. For example, the retail industry has begun to show increased interest in the use of Radio Frequency ID (RFID), a technology designed to automate processes associated with the movement of product through the supply chain. In an effort to stay ahead of demand, ModusLink has already begun using RFID technology to meet the compliance mandates of major U.S. retailers.
About ModusLink
ModusLink Corporation is a leading provider of global supply chain management solutions. The company provides global technology clients in the software, hardware, consumer electronics, telecommunications and wireless markets with customized supply chain solutions that reduce risk and time to market and improve efficiency and productivity. ModusLink's services include demand planning, sourcing and procurement, manufacturing support, kitting and assembly, fulfillment, full-cycle logistics, systems integration and development, customer support and optimization consulting. Headquartered in Waltham, Massachusetts, ModusLink maintains 42 facilities in 14 countries and employs 3,900 people worldwide. The company is a subsidiary of CMGI, Inc. (Nasdaq: CMGI - News). For additional information, see www.moduslink.com.
About CMGI
CMGI, Inc. (Nasdaq: CMGI - News), through its subsidiary ModusLink, provides technology and product solutions that help businesses market, sell and distribute their products and services. In addition, CMGI's venture capital affiliate, @Ventures, invests in a variety of technology ventures. For additional information, see www.cmgi.com. |
